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Export Credits

Volume 164: debated on Monday 8 January 1990

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To ask the Secretary of State for Trade and Industry what was, for developing countries (a) the total of outstanding export credits in 1982, (b) the total repaid each year between 1982 and 1988, (c) the total outstanding for each country in 1988, (d) the total arrears of each country in 1988, (e) the terms under which the credits were advanced and (f) the annual rates of interest charged each year from 1982 to 1988.

The total outstanding export credits to developing countries was £14·9 billion as at 31 March 1982. This figure was published in ECGD's trading results for the financial year 1981–82. Figures for repayments each year are not available but the total outstanding as at 31 March 1988 amounted to £10·4 billion. It has been the policy of successive governments not to provide details of ECGD's exposure-experience on individual markets.The definition ECGD uses for arrears on credit insurance business relates to the amount of claims paid which remain outstanding for recovery, and as at the end of 1988, this figure stood at £2·1 billion for developing countries.The terms for export credit advanced to developing countries are governed by the OECD arrangement on guidelines for officially supported export credits. This arrangement also lays down the minimum interest rates permitted. The rates in force vary depending on the length of the credit involved and the grading of the country to which credit is extended. The rates are revised twice yearly.